The new acquisitions represent a pivotal moment for Altech. Pic: Getty Images
Altech positions for battery growth with new acquisitions
Tech
share
- Altech acquires additional stakes in CERENERGY and Silumina Anodes projects
- It now holds 75% in CERENERGY and 100% of Silumina Anodes
- The acquisition is subject to shareholder approval
Special Report: Altech Batteries has notched another win after securing greater ownership of the CERENERGY and Silumina Anodes projects, enabling a more streamlined decision making and project execution pathway as it moves closer to production.
The company executed a binding term sheet to acquire Altech Advanced Materials’ (AAM) 18.75% stake in CERENERGY® and 25% stake in the Silumina Anodes projects.
This brings Altech Batteries’ (ASX:ATC) total holdings in both projects to 75% and 100% respectively, while Fraunhofer holds 25% as joint venture partner.
As consideration for the acquisitions, ATC will issue AAM ~532m fully paid shares, resulting in AAM holding 21% of the company’s issued share capital.
Based on the volume weighted average price (VWAP) of ATCS’ shares being $0.044 over the 15 trading days prior to this announcement, the total consideration offered is valued at A$23.3m.
The acquisition is still subject to several conditions precedent, including the approval by shareholders at the General Meetings of AAM and ATC.
Fast-tracking development of high-value battery projects
ATC’s management believes the transaction represents a pivotal moment for the company.
By acquiring 100% ownership of the Silumina Anodes project and 75% ownership of CERENERGY®, Altech is positioning itself to accelerate the development and commercialisation of these high-value projects.
The company notes that Silumina Anodes is a breakthrough in battery-material technology, incorporating high-purity alumina in silicon anodes to improve battery performance whereas CERENERGY® is at the forefront of next-generation sodium-chloride battery development, offering a sustainable alternative to conventional lithium-ion technology.
“The transaction presents a practical solution to recent funding challenges by AAM,” ATC said.
“Uncertainty among German investors regarding AAM’s ownership structure has complicated AAM’s fundraising efforts and hindered sustained support in Germany.
“Altech will have the autonomy to make key investment and operational decisions without requiring external approvals, thereby enhancing project execution efficiency,” the company noted, adding:
“Furthermore, the acquisitions will provide Altech with a stronger negotiation position when engaging with potential strategic partners, customers, and financiers.”
What next?
The transaction is set to deliver multiple strategic benefits including project consolidation, improved operational flexibility and efficiency, as well as addressing recent funding challenges faced by AAM.
ATC will continue working closely with AAM to finalise definitive agreements and complete all required regulatory and shareholder approvals.
Shareholders will be kept informed of any significant developments and further announcements will be made as key milestones are achieved.
The company said it remains committed to executing this strategic initiative in a manner that enhances shareholder value and accelerates its growth objectives.
This article was developed in collaboration with Altech Batteries, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
